IAN Bythell, our Residential Property Director has urged people to make the positive case for our region, as the country faces constitutional and economic crisis.
Ian broadly agreed with the concerns that were expressed at the recent Chartered Institute of Housing conference in Manchester.
“There has been concern that investment and development will stall following Brexit, and given the short supply of affordable property in some areas, this is proving a worry to social housing providers. The whole situation exacerbates the difficulties faced by young people either trying to get on the housing ladder, or even just to find a suitable rented property,” said Ian.
“It’s inevitable that we’ll face some economic uncertainty in the short to medium term. However, I think the dust will settle and I’m generally optimistic about the impact on the property market in our region.
“There is some suggestion that property prices may fall by up to 10 per cent, but I suspect these figures reflect the south east, where house price inflation has been astronomical. There remains a fundamental supply and demand imbalance and whilst supply is outstripped by demand, there will be continuing upwards pressure on property prices.
“From an investor perspective, interest rates are practically guaranteed to remain low – with some economists predicting that borrowing costs could fall to zero by August. Also housing is generally resilient – in periods of uncertainty, residential property has historically outperformed other assets– in addition to the attractive income stream it provides. Good returns for property investors and a potential slow-down in sales is good news for tenants too, as they can expect greater security of tenure.
“At Petty we are proud to be the only local members of The Relocation Agent Network – a national network of top, independent estate agents – so we have a very good understanding of the variance in the housing markets from region to region. From both a buyer’s and investor’s point of view I think east Lancashire presents a very attractive route out of the overpriced metropolitan hotspots in our region.
“The area has an abundance of high quality affordable housing, with an easy, short commute into Manchester for either work or pleasure; there are high quality schools; and a heritage and countryside offer that easily competes with anything in or beyond our region.
“The current uncertainty aside, the medium and long-term prospects for the region’s property market remain strong, so I’d urge homebuyers and investors to consider looking beyond the confines of our urban centres,” added Ian.